DRC shareholders OK 75% capital hike via bonus issue

DRC shareholders also ratify employee stock ownership plan

Digital Research Co. (DRC) said its shareholders approved the board of directors' recommendation to increase capital by 75%, from SAR 16.88 million to SAR 29.53 million during an extraordinary general assembly meeting (EGM) on June 28, according to a Tadawul filing.

The capital increase will be carried out through the capitalization of the entire share premium balance of SAR 12.5 million and SAR 158,290 from the statutory reserve, through a 3-for-4 bonus share issue.

Fractional shares, if any, will be compiled into one portfolio for all shareholders and will be offered at the market price. Proceeds will be distributed among entitled shareholders pro rata within 30 days maximum.

Shareholders also approved the employee stock incentive program (ESIP) and authorized the board of directors with full powers to implement it.

They also approved retaining the treasury shares, totaling 136,350, for 10 years.

In a separate statement, Tadawul said the fluctuation limits, on June 29, will be based on a share price of SAR 25.66 and the outstanding orders will be canceled. Furthermore, the Securities Depository Center (Edaa) will deposit the addition shares into the investor’s portfolios by July 1.